Odds of October BSP easing rise after US rate cut

Metrobank Research said the jumbo 50-basis point (bps) cut by the US Fed last week “opens the door” for a 25 bps reduction in the local policy rate at the Oct 17 meeting of the Monetary Board. — Reuters

MANILA: The outsized interest rate cut by the US Federal Reserve (Fed) could boost the confidence of the Bangko Sentral ng Pilipinas (BSP) to slash borrowing costs again next month, a move that will seal the Philippines’ status as having one of the most dovish central banks in Asia.

In a commentary, Metrobank Research said the jumbo 50-basis point (bps) cut by the US Fed last week “opens the door” for a 25 bps reduction in the local policy rate at the Oct 17 meeting of the Monetary Board (MB).